RECRUITMENT PROCESS OUTSOURCING (RPO)

 RECRUITMENT PROCESS OUTSOURCING (RPO)

Introduction

According to Abdul-Halim (2009), Recruitment Process Outsourcing (RPO) involves an employer turning the responsibility of finding potential job candidates over to a third-party service provider. RPO method is designed to bring qualified potential candidates with minimal involvement from HR staff [Figure 1.0]. An employer could sign a contract with a recruitment process outsourcing firm, giving it responsibility to find, screen and assess suitable candidates (Gale, 2015).

 

RPO Process

RPO services typically start with a recruitment process outsourcing agreement, which outlines [Figure 2.0] the scope of the project, timing, cost and more (Foley, and Andrews, 2004). Often, the HR management [HRM] staff and the RPO service provider meet to create or discuss job descriptions. Then, the RPO team spreads the word about the job opening using its own recruiting methodologies and technology or the client's techniques and systems (Corbett, 1998). 

Figure 1.0 RPO Process steps	Figure 2.0 Benefits of RPO
Source: Foley, and Andrews, (2004)	Source: Conklin, D. (2005)

RPO MODELS

End to end RPO

An end-to-end RPO can be used in a single business division, a single market, or a global enterprise. It encompasses all permanent hiring services, as well as technology investments. An end-to-end RPO typically offers the biggest cost savings and efficiencies for businesses and typically leads to greater client satisfaction (Gale, 2015).

Project RPO

According to Quinn, and Hilmer, (1994), A Project RPO also utilises an end-to-end process but is deployed to quickly bring in experts to fulfil an unexpected staffing need, on a single project basis. For example, launching a new sales or digital transformation team.

 

On-demand RPO

Similar to a Project RPO but more short-term, an on-demand RPO involves recruiters joining your team for a short period of time to rapidly attract and hire the talent you need. Often, an on-demand RPO is sought out during spikes in hiring. (Quinn, and Hilmer,1994).  

RPO Vs TRADITIONAL RECRUITMENT

Corbett, (1998) has stated RPO service provider doesn’t just fill permanent roles on an ad hoc basis, it embeds itself within an organisation, fundamentally changing the way a business hires permanent talent. Though no two solutions are the same, a good RPO solution is strategic. It should take ownership of the design and management of the recruitment process. It should embed the latest technology to ensure maximum efficiency, it should provide regular data analysis, and it should provide regular reports on the effectiveness of the solution (Abdul-Halim, 2009).

 

References

·       Abdul-Halim, H. (2009),”The influence of business strategy on the decision to outsource human resource activities”, Journal of Human Resource Costing & Accounting, Vol.13, No. 4, pp. 273 -293.

·       Adler, P. (2003), ‘Making the HR Outsourcing Decision’, MIT Slogan Management Review, Fall, Vol 45, No 1, 53-59

·       Corbett, M.F.(1998),”Outsource, beyond buying services”, Facilities, Design and Management, Vol. 17, No.1, pp. 40-3.

·       Conklin, D.W. (2005),”Risks and rewards in HR business process outsourcing”, Long Range Planning, Vol. 38, No. 6, pp. 579-598.

·       Foley, J. and Andrews, N.(2004),” Step by Step to Successful HR Outsourcing”, Human Resource Management International Digest, Vol. 12, No. 7, pp. 29-33.

·       Gale, S. F. (2015), 'Find on the Mind – Recruitment Process outsourcing has gained strategic importance in the workforce management process', Workforce, 94, 2, pp. 44- 47.

·       Quinn, J.B. and Hilmer, F.G., (1994), ‘Strategic outsourcing’, Sloan Management Review 35, 43-55.